Nearly two-thirds of US shoppers said that stubborn inflation will prevent them from buying a new phone this year, according to a survey released Tuesday — putting a possible damper on Apple sales of its latest iPhone.
The survey by WalletHub also found that nine in 10 who were polled said they think iPhones are overpriced.
When day-to-day living costs are already high, its hard for many people to justify an expensive phone upgrade, WalletHub analyst Chip Lupo said in a statement.
Apple and other phone companies may need to consider lowering prices or offering more substantial feature differences between models to entice customers.
The survey also found that 27% view someone with the newest iPhone as wasteful.
Apple did not immediately respond to requests for comment.
The California tech giant unveiled its highly-anticipated, AI-powered iPhone 16 during an event on Monday.
Its new iPhone 16 retails for $799 and the iPhone 16 Plus costs $899, while the more powerful iPhone 16 Pro and Pro Max models retail at $999 and $1,119, respectively.
But some of the new phones AI features wont be available for users until October more than a week after the phones hit stores.
The AI delay coupled with a hefty price tag amid sticky inflation may put off cash-strapped customers.
The annual inflation rate in the US for the 12 months ended July was 2.9%, above pre-pandemic levels, according to US Labor Department data.
Apple has been banking on the iPhone 16’s AI features enticing customers and boosting phone sales.
The company posted a 10% drop in year-over-year iPhone sales in second-quarter results last May the worst decline the company has seen since the pandemic.